In Pennsylvania, dividing property during a divorce involves two main steps:
- Classifying Property
First, the spouses must determine which assets are marital property and which are separate property. - Equitable Distribution
Next, the marital property is divided in a fair manner. However, “equitable” does not always translate to an exact 50/50 split.
Marital Property
- Acquired During Marriage: Any property obtained during the marriage is considered marital property.
- Increase in Value of Non-Marital Property: If non-marital assets grow in value during the marriage, that increase may be deemed marital property up until the separation date or the equitable distribution hearing, whichever reflects the lesser increase.
- Ownership Title Irrelevant: It does not matter whose name appears on the title; if it meets the definition of marital property, it is subject to division.
Separate Property
- Before Marriage: Any asset acquired before the marriage remains separate property.
- Excluded by Agreement: Items specifically excluded by a valid agreement (prenuptial, postnuptial, or other) remain separate.
- Gifts or Inheritances: Gifts or inheritances are treated as separate property—unless the gift was intended for both spouses.
- Post-Separation: Property acquired after the final separation until the official divorce date remains separate.
- Veterans’ Benefits: These benefits are generally exempt from attachment, although certain exceptions apply if part of the military retirement pay was waived to receive compensation.
- Settlements or Awards: If a cause of action “accrued” before the marriage or after the final separation, resulting payments are considered separate. The critical factor is when the right to the claim came into being, not when the money was actually received.
About Divorce Lawyer R. Badet
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